Coca-Cola Company (KO.US) has made a key adjustment to its subsidiary Red Tree Beverages, which manages the company's alcoholic beverage business in the United States, to drive development in this business segment. Red Tree Beverages has entered into a new partnership with spirits giant Sazerac: this American family-owned alcoholic beverage company will take over the production and distribution of "Fresca Mixed," the upcoming "Fresca Hard," and "Minute Maid Spiked" products. These brands were previously operated by Constellation Brands (STZ.US) and will gradually transition to Sazerac.

Through this new agreement, private company Sazerac will occupy an important position in Coca-Cola's alcoholic ready-to-drink (RTD) product portfolio in the United States. Red Tree Beverages' "Minute Maid Spiked" includes multiple ready-to-drink products, such as vodka pink lemonade, fruit punch, lime margarita, and strawberry daiquiri, encompassing both vodka-based and wine-based categories. Additionally, Red Tree Beverages has reached a licensing agreement with Molson Coors (TAP.US) to handle business related to the "Topo Chico Hard Seltzer" brand.

Analysts note that with the continued expansion of the alcoholic ready-to-drink beverage category, Red Tree Beverages is expected to achieve strong growth in 2026. As of now, Coca-Cola Company's stock price has accumulated a 9.2% gain year-to-date.